Yesterday was another day, another record, as Technology (XLK) continues to set the pace, although I have to say it was a disheartening session for software (IGV). Lots of names reversed lower mid-session, and after the close, Zscaler Inc (ZS) was hammered on guidance. Salesforce Inc (CRM) reports after the close. Chasing momentum is the trade. 

The S&P 500 (SPX) is up 9.84% this year, but it feels like 20%, which adds to the perception that the rally is unmoored from reality.

Tech was the top sector, but breadth was better in five other sectors, led by Materials (XLB).

Invesco S&P 500 Equal Weight ETF (RSP) climbed to a new all-time high as well.

And more companies are trading above their 50-day moving average.

NASA added to the “space” hype yesterday, after laying out its vision for a moon base.

There is no doubt the “space” trade looks extended, but its excitement is real.

The Semiconductor Index (SOX) names remain in “beast” mode.

Today’s Session

Another Wall Street “truism” bites the dust, but more than that’s changing.  The street has been so awful that I’m seeing some firms adjust their approach.  The rigid one-year look-ahead and dependency on valuation multiples have meant the mavens have missed a lot.

They still take home hefty paychecks, and their children go to private schools.

That is the irony, they get to be wrong and late and even sit out the greatest moneymaking wave in a lifetime, but everyone else has to be in this market.

I get it.  The best quote I read this morning came from Michael Hartnett at Bank of America, who just returned from visiting bankers in London, where one said, “We’re long, and paranoid.”

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